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  • Writer's pictureYvonne Root

The Financials GCs are Looking For

Updated: Sep 15, 2022

The Financial Documents GCs Want to See

While it may seem that General Contractors who ask for your financial information are using a microscope to see what is going on in your business, it is much more likely they are using a different lens. And that is the lens found in a quality set of binoculars – to see how well you’ll handle what is coming down the road.

Your company’s financial statements provide information that general contractors use to evaluate your company’s past financial performance.

Just as your company’s financial statements are vital tools in your managerial toolbelt, they are also crucial to the general contractor who needs to determine if your subcontracting company will be capable of staying the course throughout the project.

Yes, they do need to know something about your past to aid in assessing your future. They need to know that you can match the speed and scale of their project. So, handing over a clean, well-kept set of financial reports is step one in establishing your capabilities.

The Big Picture

In general, the GCs who prequalify their subcontractors are looking for:

  • Capability

  • Stability

  • Endurability

  • And yes, Profitability

The Financial Picture

Before discussing what financial documents general contractors want to see, I’ll mention something they don’t want to see. They don’t want the electronic equivalent of a shoebox filled with receipts and invoices.

Typically, the financial documents expected are:

  • Balance Sheet – Provides a snapshot of a subcontractor’s finances; what it owns and owes.

  • Income Statement (Profit & Loss) – Reports a construction company’s financial performance over a specific accounting period.

  • Cash Flow Statement – Measures how well the subcontractor generates cash to pay its debt obligations and fund its operating expenses.

  • Work-In-Progress (WIP) Report – This shows whether a construction company is over-or under-billing and if the cash is positive or negative.

The Final Picture

In the end, all this business with financial reports means the general contractor will know:

  • they’re dealing with a legitimate subcontractor

  • there is sufficient capital to move forward

  • the debt-to-equity ratio is acceptable

Winning a bid has many components (such as your company’s safety record, insurance compliance, and so on,) yet your financial records are among the most important. Be sure they’re “up to code.”

Construction Contractors look to The Profit Constructors to provide advocacy in dealing with:

  • Clients and customers

  • Employees and subcontractors

  • Vendors and service providers

  • Governmental entities

Working with The Profit Constructors gives Construction Contractors the means to organize their operations in ways that help them:

  • Remain informed

  • Avoid hassles

  • Reduce risks

  • Be future-ready

Ready for action? Or want to know more? Get in touch today to schedule a complimentary discovery call. 866-629-7735


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